40 YINSON HOLDINGS BERHAD Sustainable Growth through Governance VALUE CREATION AT YINSON Importance Opportunities • Creates shared value and trust with communities in operating localities. • Responsible and targeted initiatives deliver positive social, environmental and economic outcomes while addressing local needs and expectations. • Strong community relationships support social licence to operate, and reinforces reputation. • Fosters employee purpose, participation and retention, strengthening long‑term social sustainability. • Strengthened long-term trust with host communities through consistent, needs‑based engagement and partnership. • Shared value creation by delivering social and environmental outcomes that align community priorities with Yinson’s sustainability focus areas. • Enhanced employee engagement and talent attraction through structured participation in community initiatives. • Improved ESG performance and disclosure through clear articulation of impacts, governance and feedback mechanisms aligned with recognised standards. Risks Long-term approach • Social licence risk if community expectations are not adequately met, leading to opposition and project delays. • Reputational risk from misaligned, ineffective or poorly governed community initiatives that do not deliver meaningful impact. • Operational and stakeholder risk if engagement mechanisms do not sufficiently identify and respond to community concerns. • Employee engagement risk if there is lack of meaningful participation in community initiatives. • Govern community initiatives through a structured CSR framework aligned with Yinson’s CSR Policy, sustainability priorities and relevant UN SDGs. • Strengthen community engagement mechanisms to ensure responsiveness to local needs and concerns. • Encourage employee participation to foster ownership, purpose and local relevance of initiatives. • Focus on measurable and meaningful impact, supported by due diligence, monitoring and transparent reporting of outcomes. LC Related stakeholders Related Capitals SC UN SDGs 3 4 5 7 8 9131415 Targets 17 18 19 20 Community Engagement CE Performance and detailed management approach, pg 98 Importance Opportunities • As a capital-intensive, long-tenure business, disciplined planning, risk management and capital allocation safeguards liquidity and solvency. • Enables organisational and financial resilience amid geopolitical and market volatility. • Supports sustainable cash flows, portfolio quality, reliable project delivery and stakeholder confidence. • Crucial for long-term value creation and sustainable growth. • Lower cost of capital and diversified funding access through government incentives, green financing instruments and sustainability‑linked funding. • Portfolio optimisation and capital recycling by leveraging platforms and projects as scalable investment platforms. • Execution excellence as a growth lever, applying learnings, strengthening partnerships and enhancing project performance. • Digital tools to enable data‑driven decision‑making, optimising resource use, risk anticipation and operational efficiency. Risks Long-term approach • Corporate funding risk from capital‑intensive projects, tightening credit conditions, volatile interest rates and heightened ESG expectations, constraining growth and financial flexibility. • Macroeconomic, geopolitical and regulatory risk, which may disrupt operations, capital flows and project economics. • Execution and delivery risk if projects are not managed with sufficient discipline, affecting returns, timelines and stakeholder confidence. • Portfolio and performance risk from ineffective capital allocation or business processes. • Maintain disciplined capital allocation, risk management and financial planning to safeguard resilience across economic cycles. • Strengthen portfolio management and execution capabilities to enhance bankability, delivery certainty and risk‑adjusted returns. • Leverage digitalisation and data analytics to support faster, more informed and forward‑looking decision‑making. • Align business strategies, governance and performance management to support sustainable value creation. BL CC EM IS EP Related stakeholders Related Capitals FC UN SDGs 7 8 9 Targets 28 Business Management & Performance BP Performance and detailed management approach, pg 101
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